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Director of Advocacy, SOMO

BIG WIN for the climate! Energy giant RWE withdraws billion-euro anti-climate claim against the Netherlands! German energy company RWE has announced its intention to withdraw its international arbitration proceedings against the Dutch state at the International Centre for Settlement of Investment Disputes (#ICSID). The company initiated these proceedings on 2 February 2021 based on the Energy Charter Treaty (ECT), claiming €1.4 billion as compensation for expected damages due to the law that bans coal-fired power generation from 2030. RWE's decision to withdraw the case follows the appeal ruling by the German Federal Court of Justice in Karlsruhe on 27 July. The German court confirmed that under EU law, the ECT's arbitration clause cannot be a valid basis for an arbitration agreement. Earlier, the European Court of Justice came to a similar conclusion. My SOMO colleague Bart-Jaap Verbeek: "This is excellent news and a wise decision by RWE. Instead of engaging in costly rearguard battles, climate-polluting energy companies would do better to cut their losses and look to the future by fully engaging in renewable and clean forms of power generation." RWE's intention to withdraw the case was communicated by the Dutch Minister for Energy and Climate in a letter to the Dutch Parliament: https://lnkd.in/eCb-g3nv More info on the SOMO site! https://lnkd.in/e89_f9nT

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Max Schmidt

Public Climate and Energy Finance & Policy - Research and Consulting | Guest Lecturing | ex-IISD | SOAS alumni | Mentor for climate careers

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